5- Tips to handle salary question during interview

Friday, January 22, 2010

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Salary discussion is a sensitive issue but whether you like it or not, it often arises at the interview stage. Is the interview the platform for negotiation? So how do you deal with it? Check these tips.

Just when you thought that the interview has gone off well, you are stumped by the googly, "what are your salary expectations?" Like it or not, salary talks are a part of interviews. The employer tries to figure out your worth and matches the company’s offer from this. If it is a close match between the likely offered salary and your expectations, you’re in all likelihood going to receive an offer letter after everything else matches. So, how do you handle this important question? For a topic as sensitive and tricky as money, how do you proceed? Here are 5-tips to do it with elan.

Include salary history: If the employer asks you to state your present and expected CTC, you can obviously state the present CTC and mention that salary can be commensurate with responsibilities for expected CTC. Since you don't mention the exact figure of your expectation, it’s a difficult guesswork for the employers as they are largely unaware of your anticipated demand. However, your salary history can help them to figure out the compensation range and so, it’s best to state that to remain in contention. In general, it is assumed that a person can stake claim for a 25 -30% hike over his/her previous salary, if not more. However, interviews are not the place for negotiation but plain discussion, which can lay the foundation for salary negotiation later.

Know the actuals: Before the interview, you should be thoroughly prepared with the research and be aware of the company financials. So, you know what to expect and what the company can offer. Even if you don’t state that during the application process, the best way to deal with it is to tell them your current earning and what you expect. If the employer seeks specification, give a realistic range for the position, thus giving them the idea of your demand so that they can decide whether that aligns with what they have in mind. By this, you give them the opportunity to come back to you. (Also read: Don’t let salary discussions become an obstacle to success!)

State a range: The best way to answer salary question is by preparing a rough estimate of what you would like to receive, commensurate with your previous salary history. State a range rather than a specific figure and leave ample scope for negotiation later without being too rigid. Base the range on your earnings from prior positions and what you are seeking from this position with the responsibilities and position in mind. (Read: What are your salary expectations?)

Be honest: Be honest with salary figures as most employers ask for a salary slip. A fudged slip wouldn’t help your cause. Also, salary slips are verified and any fibbing can land you in trouble. Be flexible but don’t show desperation. Keep in mind the total compensation package including benefits and not just the take home figure. (Also read: Understanding components of your salary)

No personal sob-tale: There are some red flags which shouldn’t come in the discussion. Even if you are desperate on getting the job, don’t stoop to show that. Don’t talk about your personal financial pressures and burdens at home. Don’t make the discussion money-centric but more on how you can be an asset for the organisation.

Eventually, when you receive an offer, you can negotiate the tangible and intangible factors. Remember, interview is not the time to negotiate salary but if the question regarding the same is handled appropriately, this discussion can help in negotiating the best salary later.